5 Practical Ways to Overcome Money Anxiety
The bottom line is fighting money anxiety is easier said than done. Navigating this 21st century economy in times of rapid inflation, housing market crises and increasingly unlivable cities is an impeccable feat. But surviving doesn’t mean you're thriving. And when you’re simply surviving, the anxiety can begin to take its toll. So, here are five practical ways you can ease some of those anxieties.
#1: Budget
Anxiety feeds off of a lack of structure and planning, leaving you to ruminate on the what if’s of your finances. Establishing a budget is an effective way to organize your expenses and spending, and sticking to it provides the structure you need to feel secure. Keeping tabs of your cash flow will ensure you stay on the right track and will surely alleviate some of your anxiety.
#2: Set goals (realistic ones!)
Goal setting is incredibly important for feeling and knowing that you’re making progress. It also serves as a way to work towards and celebrate your milestones so that hopelessness doesn’t get the best of you. However, when goal setting, it’s important to set both long-term and short-term achievable goals. And be sure to remain realistic in how you set those short-term achievable goals so that you see the progress you want to see.
#3: Build an emergency fund
Anxiety often causes us to ruminate on thoughts of the unknown, typically negative events. An emergency fund is a sure way to guarantee you feel secure if a financially taxing situation were to suddenly occur. Further, emergency funds can be contributed to a little bit at a time even if it’s just $5-10 a week.
#4: Learn more
Many times you fear what you don’t know. Therefore, educating yourself on certain aspects of personal finance can serve as your best weapon for conquering your anxieties. Instead of stressing about how to correctly budget or when/where to invest, do your research! The more you know the more confident you’ll feel.
#5: Do your best to practice an abundance mindset.
This one is especially difficult because when money is scarce and expenses are large, it’s hard to see the positive. However, it is proven that worrying does not make the situation any better. Instead of letting your money anxiety get the best of you, find joy and gratefulness in the small wins (ex: successfully having a no-spend day, finding a good deal on something you needed, being resourceful where you can).
These five things are practical steps you can take to begin overcoming chronic money anxiety. But lastly, know that you’re doing your best, so give yourself some credit.
Written for Snowball Wealth
